Logistics & Supply Chain

Intermediate

Perfect Order Rate

Product of on-time, complete, damage-free and correctly documented rates.

Formula

POR = R_1 \times R_2 \times R_3 \times R_4

Variables

PORPerfect order rate

R_1..R_4Component success rates

Example

0.98×0.97×0.99×0.99 ≈ 0.93

Did You Know?

Because rates multiply, four good metrics of 98% still combine to only about 92% perfect orders.

logistics perfect order kpi

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More in Logistics & Supply Chain

Economic Order Quantity

Order size that minimises the combined cost of ordering and holding stock.

Reorder Point

Stock level that triggers a new order, covering demand during the lead time.

Safety Stock

Buffer inventory that absorbs demand variability during lead time.

Inventory Turnover

How many times inventory is sold and replaced in a period.

Days Inventory Outstanding

Average number of days stock sits before being sold.

Little's Law

Average items in a system equals arrival rate times average time in the system.